Keep Bank Account or Credit Card Information Away From a Debt Collector

August 20, 2008

Ever been charmed by a debt collector?

Well, if you have ever paid a past due debt by authorizing the use of a \’Check by Phone\’ or by Credit Card, you have made yourself vulnerable to the debt collector.

Why? Simply because by exposing your private information to a debt collector you have given him the power to drain your checking account or to max out your credit card. This is giving some powerful leverage to the collector.

Here is a possible scenario. If you have an outstanding past due balance of say $1000.00 and you verbally agree over the phone to $20 dollar monthly payments, and you authorize a Check by Phone or offer up your Credit Card information, the debt collector can actually withdraw or charge the total amount of the past due debt, immediately.

Since you have no physical proof of the agreement, the debt collector can take or charge the balance of the outstanding past due debt and there is not be much that you can do about it.

I recommend that you NEVER disclose your bank account or credit card information to a debt collector, as you risk them draining your account, or maxing out your credit card. This can put you in a bad position with your other creditors because you may not be able to make payment to those creditors.

Rather, if an agreement is reached, use a US Postal Money Order and send it to the collection agency in a way that will give you Confirmation of Receipt. Such as Priority Mail or Certified Mail. This may cost you a little extra to send in time, money and trouble, but the assurance that it will give you is well worth it.

Include in the package a written statement outlining the terms that were agreed upon between you and the debt collector and note in the letter that by depositing of the enclosed money order # (note money order number here) acknowledges the outlined terms.

The written word is always more powerful than the memory.

Don\’t leave yourself susceptible to unscrupulous debt collectors.

They are out there - and they will get you if they can.

Carlos D Cruz
\r ccruz@debtcreditlearningcenter.com
\r http://www.DebtCreditLearningCenter.com

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